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American Riviera Bank Reports Record Quarterly Net Income

American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $1,768,000 ($0.35 per share) for the quarter ended March 31, 2019. This represents a 31% increase in net income from the $1,352,000 ($0.31 per share) for the same reporting period in the prior year. The annualized return on average assets of 1.19% and return on average equity of 11.90% represent an increase from the 1.09% and 10.27%, respectively, achieved for the same reporting period in the prior year.

The Bank experienced significant organic growth in the last year, reporting $639 million in total assets as of March 31, 2019. Asset growth was made possible by total deposits increasing 16% from March 31, 2018, reaching $546 million at March 31, 2019. Non-interest bearing demand deposit accounts increased $32 million, or 21% since the same reporting period last year, reaching $187 million at March 31, 2019.

The Bank reported strong loan growth, with loans increasing $89 million, or 20% from March 31, 2018, reaching $521 million at March 31, 2019 with no other real estate owned. The Bank reported an annualized net interest margin of 4.42% for the three months ended March 31, 2019.

Jeff DeVine, President and Chief Executive Officer stated, The first quarter of 2019 has set the stage for an exciting year.  With the completion of our stock offering, the anticipated opening of our full service San Luis Obispo branch and commercial banking center in the second quarter of 2019, and strong organic growth in both loans and deposits, American Riviera Bank is positioned to continue our commitment to our clients and shareholders as the Central Coast’s community bank.”   

American Riviera Bank reported an increased capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. The increased capital position was due to strong earnings and the completion of an $8.5 million common stock offering in the first quarter of 2019. The tangible book value per share of American Riviera Bank common stock is $13.07 at March 31, 2019, a 14% increase from $11.44 at March 31, 2018.

 

Balance Sheets (unaudited)            
(dollars in thousands)            
      Mar 31,   Mar 31,   One Year
      2019   2018   Change
Assets              
  Cash & Due From Banks    $          48,835    $       46,821   4%
  Fed Funds Sold                         -                     616   -100%
  Securities                44,123             38,862   14%
               
  Loans              520,857           432,345   20%
  Allowance For Loan Losses              (5,661)             (4,529)   25%
  Net Loans              515,196           427,816   20%
               
  Fixed Assets                  5,588               4,868   15%
  Goodwill and Other Intangibles                5,472               5,650   -3%
  Other Assets                19,524             15,152   29%
Total Assets              638,738           539,785   18%
               
               
Liabilities & Shareholders' Equity            
  Demand Deposits              187,048           154,865   21%
  NOW Accounts                76,370             94,113   -19%
  Other Interest Bearing Deposits            282,874           223,337   27%
  Total Deposits              546,292           472,315   16%
               
  Borrowed Funds                15,000             10,000   50%
  Other Liabilities                  6,562               1,640   300%
  Total Liabilities              567,854           483,955   17%
               
  Common Stock                54,513             45,848   19%
  Retained Earnings                16,600             10,293   61%
  Other Capital                    (229)                 (311)   -26%
  Total Shareholders' Equity              70,884             55,830   27%
               
Total Liabilities & Shareholders' Equity  $       638,738    $    539,785   18%
               
  Book Value Per Share    $            14.16    $         12.72   11%
  Tangible Book Value Per Share  $            13.07    $         11.44  

14%

 

Statements of Income (unaudited)            
(dollars in thousands)            
      Quarter Ended
      Mar 31,   Mar 31,    
      2019   2018   Change
Interest Income            
  Interest and Fees on Loans    $              6,680    $            5,335   25%
  Net Fair Value Amortization Income                        222                        63   252%
  Interest on Securities                        284                      183   55%
  Interest on Fed Funds                             1                        11   -91%
  Interest on Due From Banks                        198                      147   35%
  Total Interest Income                    7,385                  5,739   29%
               
Interest Expense            
  Interest Expense on Deposits                        825                      265   211%
  Interest Expense on Borrowings                        141                        23   513%
  Total Interest Expense                        966                      288   236%
               
Net Interest Income                    6,418                  5,451   18%
  Provision for Loan Losses                        175                      268   -35%
Net Interest Income After Provision                    6,244                  5,183   20%
               
Non-Interest Income            
  Service Charges, Commissions and Fees                      427                      436   -2%
  Other Non-Interest Income                        166                      114   46%
  Total Non-Interest Income                        593                      550   8%
               
Non-Interest Expense            
  Salaries and Employee Benefits                    2,692                  2,354   14%
  Occupancy and Equipment                        494                      391   26%
  Other Non-Interest Expense                    1,313                  1,149   14%
  Total Non-Interest Expense                    4,499                  3,894   16%
               
Net Income Before Provision for Taxes                    2,338                  1,839   27%
Provision for Taxes                        570                      487   17%
Net Income     $              1,768    $            1,352   31%
               
  Shares (end of period)            5,020,829          4,412,919   14%
  Earnings Per Share - Basic    $                0.35    $              0.31   13%
               
  Return on Average Assets (annualized) 1.19%   1.09%    
  Return on Average Equity (annualized) 11.90%   10.27%    
  Net Interest Margin (annualized)   4.42%   4.50%